0. Module 8 E-Commerce Security and Fraud Protection

1. THE INFORMATION SECURITY PROBLEM
WHAT IS EC SECURITY?
Computer security refers to the protection of data, networks, computer programs, computer power, and other elements of computerized information systems
The Status of Computer Security in the United States
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2. THE INFORMATION SECURITY PROBLEM
CSI Computer Crime and Security Survey
Annual security survey of U.S. corporations, government agencies, financial and medical institutions, and universities conducted by the Computer Security Institute.
National Security
Cyber Security Preparedness and the National Cyber Alert System
US-CERT Operations
National Cyber Response Coordination Group
CyberCop Portal
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5. THE INFORMATION SECURITY PROBLEM
THE DRIVERS OF EC SECURITY PROBLEMS
The Internet’s Vulnerable Design
domain name system (DNS)
Translates (converts) domain names to their numeric IP addresses.
IP address
An address that uniquely identifies each computer connected to a network or the Internet.
The Shift to Profit-Induced Crimes
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6. THE INFORMATION SECURITY PROBLEM
Internet underground economy
E-markets for stolen information made up of thousands of Web sites that sell credit card numbers, social security numbers, other data such as numbers of bank accounts, social network IDs, passwords, and much more.
keystroke logging (keylogging)
A method of capturing and recording user keystrokes.
The Dynamic Nature of EC Systems and the Role of Insiders
WHY IS E-COMMERCE SECURITY STRATEGY NEEDED?
The Computer Security Dilemma
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7. BASIC E-COMMERCE SECURITY ISSUES AND LANDSCAPE
THE SECURITY BASIC TERMINOLOGY
business continuity plan
A plan that keeps the business running after a disaster occurs. Each function in the business should have a valid recovery capability plan.
cybercrime
Intentional crimes carried out on the Internet.
exposure
The estimated cost, loss, or damage that can result if a threat exploits a vulnerability.
fraud
Any business activity that uses deceitful practices or devices to deprive another of property or other rights.
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8. BASIC E-COMMERCE SECURITY ISSUES AND LANDSCAPE
malware (malicious software)
A generic term for malicious software.
phishing
A crimeware technique to steal the identity of a target company to get the identities of its customers.
risk
The probability that a vulnerability will be known and used.
social engineering
A type of nontechnical attack that uses some ruse to trick users into revealing information or performing an action that compromises a computer or network.
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9. BASIC E-COMMERCE SECURITY ISSUES AND LANDSCAPE
spam
The electronic equivalent of junk mail.
vulnerability
Weakness in software or other mechanism that threatens the confidentiality, integrity, or availability of an asset (recall the CIA model). It can be directly used by a hacker to gain access to a system or network.
zombies
Computers infected with malware that are under the control of a spammer, hacker, or other criminal.
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10. BASIC E-COMMERCE SECURITY ISSUES AND LANDSCAPE
Threats and Attacks: Unintentional and Intentional
Unintentional Threats
Human error
Environmental hazards
Malfunctions in the computer system
Intentional Attacks and Crimes
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11. BASIC E-COMMERCE SECURITY ISSUES AND LANDSCAPE
Criminals and Social Engineering
cybercriminal
A person who intentionally carries out crimes over the Internet.
hacker
Someone who gains unauthorized access to a computer system.
cracker
A malicious hacker, such as Maxwell in the opening case, who may represent a serious problem for a corporation.
Vulnerable Areas Are Being Attacked
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12. BASIC E-COMMERCE SECURITY ISSUES AND LANDSCAPE
EC Security Requirements
authentication
Process to verify (assure) the real identity of an individual, computer, computer program, or EC Web site.
authorization
Process of determining what the authenticated entity is allowed to access and what operations it is allowed to perform.
Auditing
Availability
nonrepudiation
Assurance that online customers or trading partners cannot falsely deny (repudiate) their purchase or transaction.
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13. BASIC E-COMMERCE SECURITY ISSUES AND LANDSCAPE
THE DEFENSE: DEFENDERS AND THEIR STRATEGY
EC security strategy
A strategy that views EC security as the process of preventing and detecting unauthorized use of the organization’s brand, identity, Web site, , information, or other asset and attempts to defraud the organization, its customers, and employees.
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14. BASIC E-COMMERCE SECURITY ISSUES AND LANDSCAPE
deterring measures
Actions that will make criminals abandon their idea of attacking a specific system (e.g., the possibility of losing a job for insiders).
prevention measures
Ways to help stop unauthorized users (also known as “intruders”) from accessing any part of the EC system.
detection measures
Ways to determine whether intruders attempted to break into the EC system, whether they were successful, and what they may have done.
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15. BASIC E-COMMERCE SECURITY ISSUES AND LANDSCAPE
information assurance (IA)
The protection of information systems against unauthorized access to or modification of information whether in storage, processing, or transit, and against the denial of service to authorized users, including those measures necessary to detect, document, and counter such threats.
Defense Methods and Technologies
Recovery
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16. PHISHING, FINANCIAL FRAUD, AND SPAM
FRAUD ON THE INTERNET
Examples of Typical Online Fraud Attempts
identity theft
Fraud that involves stealing an identity of a person and then the use of that identity by someone pretending to be someone else in order to steal money or get other benefits.
Other Financial Fraud
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17. THE INFORMATION ASSURANCE MODEL AND DEFENSE STRATEGY
confidentiality
Assurance of data privacy and accuracy. Keeping private or sensitive information from being disclosed to unauthorized individuals, entities, or processes.
integrity
Assurance that stored data has not been modified without authorization; a message that was sent is the same message as that which was received.
availability
Assurance that access to data, the Web site, or other EC data service is timely, available, reliable, and restricted to authorized users.
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18. THE INFORMATION ASSURANCE MODEL AND DEFENSE STRATEGY
E-COMMERCE SECURITY STRATEGY
Prevention and deterrence
Detection
Containment (contain the damage)
Recovery
Correction
Awareness and compliance
EC security programs
All the policies, procedures, documents, standards, hardware, software, training, and personnel that work together to protect information, the ability to conduct business, and other assets.
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19. THE DEFENSE I: ACCESS CONTROL, ENCRYPTION, AND PKI
Mechanism that determines who can legitimately use a network resource.
Authentication and Passwords
biometric control
An automated method for verifying the identity of a person based on physical or behavioral characteristics.
biometric systems
Authentication systems that identify a person by measurement of a biological characteristic, such as fingerprints, iris (eye) patterns, facial features, or voice.
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20. THE DEFENSE II: SECURING E-COMMERCE NETWORKS
firewall
A single point between two or more networks where all traffic must pass (choke point); the device authenticates, controls, and logs all traffic.
packet
Segment of data sent from one computer to another on a network.
personal firewall
A network node designed to protect an individual user’s desktop system from the public network by monitoring all the traffic that passes through the computer’s network interface card.
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21. THE DEFENSE II: SECURING E-COMMERCE NETWORKS
virtual private network (VPN)
A network that uses the public Internet to carry information but remains private by using encryption to scramble the communications, authentication to ensure that information has not been tampered with, and access control to verify the identity of anyone using the network.
protocol tunneling
Method used to ensure confidentiality and integrity of data transmitted over the Internet by encrypting data packets, sending them in packets across the Internet, and decrypting them at the destination address.
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22. THE DEFENSE III: GENERAL CONTROLS AND OTHER DEFENSE MECHANISMS
Controls established to protect the system regardless of the specific application. For example, protecting hardware and controlling access to the data center are independent of the specific application.
application controls
Controls that are intended to protect specific applications.
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24. THE DEFENSE III: GENERAL CONTROLS AND OTHER DEFENSE MECHANISMS
APPLICATION CONTROLS
intelligent agents
Software applications that have some degree of reactivity, autonomy, and adaptability—as is needed in unpredictable attack situations. An agent is able to adapt itself based on changes occurring in its environment.
internal control environment
The work atmosphere that a company sets for its employees.
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25. THE DEFENSE III: GENERAL CONTROLS AND OTHER DEFENSE MECHANISMS
PROTECTING AGAINST SPAM
Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act
Law that makes it a crime to send commercial messages with false or misleading message headers or misleading subject lines.
PROTECTING AGAINST POP-UP ADS
PROTECTION AGAINST PHISHING
PROTECTING AGAINST SPYWARE
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26. BUSINESS CONTINUITY, SECURITY AUDITING, AND RISK MANAGEMENT
BUSINESS CONTINUITY AND DISASTER RECOVERY PLANNING
disaster avoidance
An approach oriented toward prevention. The idea is to minimize the chance of avoidable disasters (such as fire or other human-caused threats).
RISK-MANAGEMENT AND COST-BENEFIT ANALYSIS
Risk-Management Analysis
Ethical Issues
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